Investing in stocks that consistently raise dividends can help you earn worry-free income for decades. Moreover, this income can grow with time. However, when it comes to dividend growth, Fortis and Canadian Utilities are two Canadian stocks that stand out as “Dividend Kings,” having consistently raised their dividends for over 50 years.
Even though there are only two TSX dividend-paying stocks with Dividend King status, there are several fundamentally strong companies ideal for generating growing passive income for years. These companies are well-positioned to continue paying and raising their payouts, making them “Kings” in their own right when it comes to dividend growth.
With this background, let’s look at a dependable passive-income stock that pays out every month. Monthly payouts can provide a steady income stream without the need to sell shares. They also offer more frequent opportunities to reinvest dividends, which can enhance long-term returns.
A top Canadian stock that pays every month
SmartCentres Real Estate Investment Trust (TSX:SRU.UN) is a reliable stock for monthly dividend income. This real estate investment trust (REIT) offers a resilient payout and attractive yield, making it an excellent option for passive-income investors.
SmartCentres owns and operates a portfolio of 195 high-quality properties, including retail shopping centers and mixed-use developments. Its properties are located in high-traffic areas across Canada, which consistently witness higher demand, adding stability to its financials and payouts.
Currently, SmartCentres pays a monthly dividend of $0.154 per share, equating to a generous yield of 6.8% based on its recent stock price of $27.12 (September 18, 2024).
Why is SmartCentres a reliable dividend stock?
For investors seeking steady income, SmartCentres is a strong option. Its portfolio of high-traffic retail properties consistently generates reliable income, supporting its dividend payouts. The REIT’s focus on retail spaces ensures high occupancy rates as retailers continue to grow and demand more space. Further, its properties witness increasing renewal rates.
SmartCentres’s occupancy rate stood at an impressive 98.2% in the second quarter (Q2) of 2024. This reflects solid tenant demand. Moreover, the company’s management highlighted that the demand for its existing and new build spaces continued to grow, providing a solid foundation for future growth.
Notably, SmartCentres extended its leases with higher rents and re-leased vacant industrial spaces at higher prices. This demand for its properties is a promising indicator of continued growth.
Moreover, the REIT is expanding into mixed-use developments, which include residential, office, industrial, and self-storage properties. This diversification strategy is expected to accelerate growth and create new, recurring income streams. With a solid pipeline of projects in place, SmartCentres is well-positioned to continue its upward trajectory.
A strong future for SmartCentres
SmartCentres expects to maintain strong occupancy rates and stable cash flows from its retail properties. The development of mixed-use projects is also expected to support growth. With a robust asset base and expanding tenant demand, SmartCentres is well-positioned to deliver consistent value to its shareholders through regular dividend payments.
